The government has accepted IMGs recommendations, sources said. The ministerial panel was constituted on July 3, 2012, to review the progress of the coal blocks allotted to private and public sector firms.

The Inter Ministerial Group (IMG) reviewing the development of coal blocks concluded its task today. After more than 10 meetings since it was set up, the panel recommended the deallocation of 12 blocks awarded, since 1998, to private firms.

The government has accepted IMG’s recommendations, sources said. The ministerial panel was constituted on July 3, 2012, to review the progress of the coal blocks allotted to private and public sector firms.

Private companies owning the 28 coal blocks under review were sent show cause notices in May this year asking them why their licenses should not be revoked because of the delay in developing their respective blocks.

The big companies on the deallocation list include JSW Steel, owned by industrialist Sajjan Jindal, and the Bombay Stock Exchange-listed Maharashtra Seamless (a part of the D.P. Jindal Group, a company owned by Sajjan Jindal’s cousin), which owns the license for the Gondkhari coal block in Maharashtra.

The IMG has also recommended the deallocation of the New Patrapara coal block in Orissa awarded to a consortium of Bhusan Steel (owned by the Singhal family), BSE-listed Adhunik Metaliks, Deepak Steel, and BSE-listed Orissa Sponge Iron.

The panel gave a clean chit to only three of the 28 blocks. While the Moher and Moher Amlohri blocks have been allocated to Anil Ambani’s Reliance Power for its Sasan Ultra Mega Power Project, the Pachmo block in Jharkhand has been allotted to Tata Steel.

For some politically controversial coal blocks, the IMG has recommended either deallocation or a deduction in bank guarantee. The coal block license to SKS Ispat and Power, a company which drew attention because of its connection with the brother of Union Tourism Minister Subodh Kant Sahay, will be revoked.

For Jayswal Neco, a company linked to Manoj Jayswal of Abhijit Group, which in turn has links with JAS Infrastructure and Congress Member of Parliament P. Vijay Darda and his family, the IMG has recommended deallocation.

The panel has recommended revocation of licences to IST Steel & Power, promoted by the son of P.C. Gupta, a former minister for corporates. IST Steel & Power along with Gujarat Ambuja Cements and Lafarge was allocated the Dahegaon Makardhokra coal block in Chattisgarh in 2009.

With the review of the 28 coal blocks completed, the IMG will start reviewing the 30 odd blocks allocated to public sector companies and organisations in the states and Centre. The IMG is likely to begin this process after its chairperson Zohra Chatterjee, Additional Secretary in Coal Ministry, rejoins work in about 7-10 days.